found this on ADVFN, thanks to Liquid Mill for posting it..
The company has today confirmed that its strategy of using collaborative and co-development partnerships is accelerating the potential for a significant licensing deal at a late pre-clinical or early clinical stage. This strategy of sharing risk, cost and resources continues to minimise shareholder dilution.
The interim results announced today illustrate that the management is continuing to make progress despite a low cash burn-rate by industry standards. In the first six months of fiscal 2014, the loss after tax was just £0.376m.
Since April 2013, the company has entered into three collaborations and gained grant funding for one project, thus allowing it to progress all four of its lead projects without incurring expensive research costs.
The co-development agreement with Hebei Medical University Biomedical Engineering Center (HMUBEC) announced in December 2013, to advance the Aurora+FLT3 cancer programme, is a good example of how a collaboration can provide unlimited upside with virtually no downside risk for Sareum’s shareholders. Our sum of the parts model continues to value the shares at 1.96p.
§ Potential news flow in 2014
In 2014, we expect further news of progress in all the four lead projects. There is the possibility of further news on the TYK2 project, with development partner, SRI, publishing pre-clinical data on its psoriasis study, which the Sareum management is hoping to present in conferences during 2014. SRI’s studies have also indicated that Sareum’s lead compounds are inhibiting JAK1 which, like TYK2, is another member of the JAK family of kinases and is essential for signaling by a number of cytokines involved in psoriasis, as well as inflammatory bowel disease and rheumatoid arthritis. Sareum’s compounds will be tested on models of these diseases in due course.
The first half of 2014, we may also see news of Aur+FLT3 being granted an EU patent and the release of pre-clinical data from the FASN study, funded by a TSB Biomedical Catalyst grant.
In the second half of 2014, we expect the TYK2 project to nominate a lead candidate. Studies on the CHK1 inhibitor candidates continue to focus on completing the pre-clinical development phase of the programme, which include demonstrating control of the production of the candidate molecule and an assessment of its safety profile.
If successful, it will lead to the submission of a clinical trial application to the UK regulator, MHRA, in late 2014/early 2015. If this is approved, the first-in-human trials in cancer patients would then be initiated.
I found the sum of parts of 1.96p quite interesting :-)
Good scientist crap business man. Somes comments about him stepping back and letting someone else give it a crack might not be a bad idea. He has failed to lift thr share price with his so called good rns. He should have remained a scientist! Now we all have to sit around for another three years hoping 1p will return. This will probably go back to the 0.4-0.5 range where to be honest it belongs! Until the wedge comes in that is.
Yet another "great" RNS and look at how its greeted. He really did f uck up with the whole 2012 thing. There have been so many "good/great" RNS coming out of SAR over the last year that have been completely marred by the sh itstorm Tim created a couple of years back. As I've said before, this ain't going nowhere until he starts bringing in the greenbacks.
I am afraid that the elephant in the room which has broken the trust of the market in this company is Tim Mitchells comments relating to a takeover/buyout call it what you will by the end of 2012. Since then this has continued an inexorable decline. It will not make significant headway until or if the trust of the market is restored IMO. I have been a long term holder and my investment has been decimated. I now have to hold but I think that we will not see any return for a very long time.
Not convinced by his priorities to be honest. The market has become sick of these types of updates, maybe originally his strategy was correct however the self inflicted damage that was created in 2012 has seen us wither away. Strategy needs to change to restore market confidence in a profitable licence deal and being in the black and not the red before we will see confidence restored. At first opportunity I would be happy with selling off TYK2, restore confidence and the future updates for our blockbuster of Chk1 and Aurora+FLT3 will have the market reaction we all expect and deserve. Give up 1 compound to prove a point and restore market confidence, as stated they are now looking to work on new compounds and expand the pipeline so giving one up is better for our current position. All IMO
It's all about risk. Progress is good but it will need to remove some of the risk before we see a decent rise. I may have mentioned this a few times lately :)
All of the risks remain. Toxicology, manufacture, leading to paperwork and the trials probably in Q1 both here and China. None of this has been reduced as a result of todays announcements. But if and when each risk is removed we will see a price rise. Smallish steps at first (after any volatility settles down) but getting larger with the removal of each risk.
For me, one of the biggest non-science risks is the cost of Phase 1. SARs payment of £800k is for the pre-clinical work. BACIT have stated they expect to pay the same plus another £1.2m at some point. I can't see any reason to discount the possibility that SAR will need to find a similar amount for CHK1. I hope this isn't by another placing in the latter half of the year but there are other possibilities.
I think Tim is in an awkward (yet good) position whereby he knows the full potential of CHK1 and Aurora FLT3 and really does not want to deal on these before the Phase 1 trial results are known for less than he believes they are worth. If it works out it will see any potential deal command a very significant price. If it doesn't then with hindsight it will be the wrong strategy but that's life. But this 'licence at a later stage' approach costs money which has to come from somewhere.
If not a placing, then he has to deal on something else. Maybe some interest in TYK2/ JAK1 will come out of the conferences and he can licence that programme to cover the costs.
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